21 Jul

Loonie hits 5-week high

Canada's central bank has left its key interest rate at a record low 0.25% as the currency touched its highest in more than five weeks against the greenback. The loonie is gaining for a third day straight as it rides the coattails of global stocks and crude oil upwards. The commodity and risk appetite driven Canadian dollar is moderating a recovery that has been quicker than expected.

The loonie is the best performer this month among the 16 most active currencies, rising 5.7% to touch at CAD1.0966 against the US dollar. The New Zealand and Australian currency exchange rates are similarly driven by commodities and risk appetite, and have followed the loonie's rise to increases of 1.8% and 1.3%, respectively against the US dollar.

Mark Carney is the central bank governor who cut the interest rate to a record low 0.25% and plans to leave it there through June 2010 to eliminate the recession.

The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.